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Key regions: Worldwide, Australia, Europe, United States, Vietnam
The Ready-to-Drink (RTD) Coffee market in Saudi Arabia is experiencing significant growth due to changing customer preferences, emerging trends, and local special circumstances.
Customer preferences: Saudi Arabian consumers are increasingly seeking convenience and on-the-go options, which has fueled the demand for ready-to-drink coffee products. The busy lifestyles of urban dwellers and the desire for quick and easy refreshments have led to a shift towards RTD coffee as a popular choice among consumers. Additionally, the younger generation, who are more open to trying new and innovative products, are driving the growth of the RTD coffee market in Saudi Arabia.
Trends in the market: One of the key trends in the RTD coffee market in Saudi Arabia is the rising popularity of cold brew coffee. Cold brew coffee is known for its smoother and less acidic taste compared to traditional hot brewed coffee, making it appealing to a wider range of consumers. This trend is in line with the global shift towards cold brew coffee, as consumers become more health-conscious and seek out alternative coffee options. Another trend in the market is the growing demand for premium and specialty RTD coffee products. Saudi Arabian consumers are increasingly willing to pay a premium for high-quality and unique coffee flavors. This trend is driven by the desire for a more elevated coffee experience and the influence of Western coffee culture.
Local special circumstances: Saudi Arabia has a large young population, with a significant portion of the population under the age of 30. This demographic group is more open to trying new products and has a higher disposable income, which contributes to the growth of the RTD coffee market. Additionally, the increasing number of coffee shops and cafes in the country has also helped to popularize RTD coffee, as consumers are exposed to a wider range of coffee options and flavors.
Underlying macroeconomic factors: The economic growth and increasing urbanization in Saudi Arabia have played a role in the development of the RTD coffee market. As the country's economy continues to diversify and modernize, more consumers have access to disposable income and are willing to spend on convenience products like RTD coffee. Additionally, the growing middle class and the rise of the coffee culture in the country have also contributed to the growth of the market. In conclusion, the Ready-to-Drink (RTD) Coffee market in Saudi Arabia is experiencing growth due to changing customer preferences, emerging trends, and local special circumstances. The demand for convenience, the popularity of cold brew coffee, and the willingness to pay for premium and specialty products are driving the growth of the market. Additionally, the young population, increasing number of coffee shops, and the macroeconomic factors of economic growth and urbanization are also contributing to the development of the RTD coffee market in Saudi Arabia.
Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.
Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.
Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.
Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.
Mon - Fri, 9am - 6pm (EST)
Mon - Fri, 9am - 5pm (SGT)
Mon - Fri, 10:00am - 6:00pm (JST)
Mon - Fri, 9:30am - 5pm (GMT)
Mon - Fri, 9am - 6pm (EST)